President Trump on Saturday issued a stern warning to Walmart in response to the company’s plan to raise prices amid tariff changes, demanding that the retail giant absorb the added costs instead of passing them along to consumers.
The White House, already facing concerns about inflation driven by tariffs, has begun publicly pressuring large retailers to maintain low prices. Walmart announced Thursday that it could no longer absorb the costs tied to trade policy, despite a recent reduction in tariffs on Chinese goods from 145% to 30%. The company indicated that some price hikes on select items could begin as early as this month.
A source close to Walmart noted that this development didn’t come as a surprise to the administration. The company had previously communicated to the White House that absorbing costs was becoming unsustainable, and there had been no pushback from officials at the time.
Taking to Truth Social on Saturday morning, Trump blasted Walmart’s move. He criticized the company for pointing to tariffs as the reason for price increases and emphasized its recent financial performance.
“Walmart should STOP trying to blame Tariffs as the reason for raising prices throughout the chain. Walmart made BILLIONS OF DOLLARS last year, far more than expected,” Trump wrote. “Between Walmart and China they should, as is said, ‘EAT THE TARIFFS,’ and not charge valued customers ANYTHING. I’ll be watching, and so will your customers!!!”
The tension follows a recent private meeting between Trump and retail executives, including Walmart’s CEO, where they warned that continued tariff pressure would result in higher prices and product shortages. That conversation reportedly contributed to a slight moderation in the administration’s tone on trade.
However, days later, the White House publicly criticized reports that Amazon was exploring ways to inform customers about tariff-related price impacts a claim the company denied calling it “hostile and political.”
Commerce Secretary Howard Lutnick, speaking last weekend, dismissed concerns that consumers would be burdened by tariffs, calling such arguments “silly.” Yet Walmart, the country’s largest retailer, has now made clear that those burdens are real and imminent.
Walmart has not yet specified which products will see higher prices or the exact timing, but changes are expected within the next few weeks. A company spokesperson stated, “We have always worked to keep our prices as low as possible and we won’t stop. We’ll keep prices as low as we can for as long as we can given the reality of small retail margins.”